As of October 2024, only 36% of active Employees’ Provident Fund (EPF) members have accumulated the minimum savings threshold of RM240,000 by age 55—far below what’s needed for a comfortable retirement.
For many Malaysians, the EPF remains the primary retirement safety net, but relying on it alone may not be enough. That’s where the Private Retirement Scheme (PRS) comes in.
PRS is a voluntary savings and investment scheme designed to help Malaysians build long-term wealth for retirement. With flexible contributions, diverse investment options, and tax relief benefits, it serves as a valuable supplement to your EPF savings.
If you’re looking to take control of your retirement future, this guide will walk you through everything you need to know about investing in PRS in Malaysia.
What is PRS and Why Should You Invest?
What is PRS?
The Private Retirement Scheme (PRS) is a government-regulated retirement savings scheme managed by the Private Pension Administrator (PPA) Malaysia.
It provides Malaysians an additional way to save and invest for retirement, complementing their EPF savings.
Why Invest in PRS?
- Voluntary & Flexible Contributions – You decide how much and when to contribute.
- Multiple Investment Options – Choose from different funds based on your risk appetite.
- Tax Relief Up to RM3,000 Per Year – Reduce your taxable income while growing your savings.
- Regulated by Securities Commission Malaysia – Ensuring security and transparency.
Choosing a PRS Provider
Before you start investing, you need to choose a PRS provider. Some of the approved PRS providers in Malaysia include:
- AHAM Asset Management Berhad
- AIA Pension and Asset Management Sdn Bhd
- AmFunds Management Berhad
- CIMB-Principal Asset Management Berhad
- Kenanga Investors Berhad
- Manulife Investment Management Berhad
- Public Mutual Berhad
- RHB Asset Management Sdn Bhd
How to Choose the Right Provider?
Consider the following factors:
✅ Fund Performance – Check past returns, though not guaranteed.
✅ Risk Level – Choose from conservative, balanced, or growth funds.
✅ Fees & Charges – Some providers have lower management fees.
✅ Ease of Contribution – Online access, mobile apps, and platforms like FSMOne or Versa can make investing easier.
How to Open a PRS Account
Step 1: Select Your PRS Provider
Visit the official website of your chosen PRS provider or go through platforms like FSMOne or Versa.
Step 2: Choose a PRS Fund
Decide on your risk level:
- Conservative Fund – Lower risk, lower returns.
- Balanced Fund – Moderate risk, moderate returns.
- Growth Fund – Higher risk, potentially higher returns.
Step 3: Register Online or Via PRS Online (PPA Malaysia)
Most providers allow you to sign up online. Alternatively, you can register through:
➡️ PRS Online via PPA Malaysia
Step 4: Make Your First Contribution
- Some PRS funds require a minimum initial investment (e.g., RM100–RM1,000).
- You can contribute anytime, in any amount.
Managing Your PRS Investment
Once you start investing, you should monitor and manage your PRS funds effectively.
How to Track Your PRS Investment?
- PPA Account – Log in to PPA’s official portal to track your funds.
- Provider’s Website – Most PRS providers have online portals.
- AHAM Asset Management Berhad (formerly Affin Hwang AM)
🔗 https://aham.com.my - AIA Pension and Asset Management Sdn Bhd
🔗 https://www.aia-prs.com.my - AmInvest (AmFunds Management Berhad)
🔗 https://www.aminvest.com - CIMB-Principal Asset Management Berhad
🔗 https://www.principal.com.my/ - Kenanga Investors Berhad
🔗 https://www.kenangainvestors.com.my - Manulife Investment Management Berhad
🔗 https://www.manulifeinvestment.com.my - Public Mutual Berhad
🔗 https://www.publicmutual.com.my
- AHAM Asset Management Berhad (formerly Affin Hwang AM)
- Investment Platforms – If you invested via FSMOne or Versa, you can track your funds there.
Can You Switch PRS Funds?
Yes! You can switch funds within the same provider or transfer to another provider, but some may charge a switching fee.
Withdrawing from PRS
Since PRS is designed for long-term retirement savings, withdrawals before retirement age (55) come with an 8% tax penalty.
When Can You Withdraw Without Penalty?
✔️ Upon reaching 55 years old.
✔️ In cases of total permanent disability.
✔️ If diagnosed with critical illness.
✔️ In the event of death (funds go to beneficiaries).
How to Maximize Your PRS Investment
To get the most out of your PRS investment, follow these strategies:
✅ Take Full Advantage of Tax Relief
- Claim up to RM3,000 in tax relief per year to reduce your taxable income.
✅ Contribute Regularly
- Instead of a one-time lump sum, contribute consistently (monthly/quarterly).
- Example: RM250 per month = RM3,000 per year (full tax relief).
✅ Diversify with Other Investments
- PRS should complement your EPF savings.
- Consider unit trusts, ETFs, or real estate for a diversified retirement plan.
Conclusion
Investing in PRS Malaysia is one of the best ways to grow your retirement savings while enjoying tax benefits.
Since it’s voluntary, you can start at any time, at any amount, and choose a fund that matches your goals.
So why wait? Start investing in PRS today and take control of your financial future! 🚀
💡 For more information, visit:
🔗 Private Pension Administrator Malaysia (PPA)
🔗 FSMOne PRS
🔗 Versa PRS
